Prof. Ronald Colombo in Newsday

EXCERPT:
Ronald Colombo, a professor of corporate and securities law at Hofstra University’s School of Law, said that many failed businesses simply close their doors without a formal, court-supervised bankruptcy proceeding. Those that do file usually do so because of heavy debt, he said.

“They rack up debt and then reach a point where they can’t go quietly into the night,” Colombo said. “They owe money they can’t pay off. You can’t just stop doing business at that point; you’ll be sued [by creditors].”